The world’s second-largest cryptocurrency by market cap, Ethereum hit an all-time high on Wednesday. The cause of this surprising rise were media reports about the EIB’s plans to launch a digital bond sale on the ether blockchain network.
Ethereum is the digital token that facilitates transactions on the ethereum blockchain.
Remarkably, Bloomberg reported on Tuesday that the European Investment Bank plans to issue a two-year 100-million euro digital bond. The sale is to be led by Goldman Sachs, Banco Santander, and Societe Generale.
The cryptocurrency reached a lifetime high of $2,713.85 on Wednesday, following a more than 5% rally in the previous session. Significantly, it was last up 1.4%, at $2,706.39.
digital currencies rose after JPMorgan revealed its plans to offer a managed bitcoin fund
According to Danny Kim, head of revenue at SFOX, a full-service crypto broker, reports on an EIB digital bond issuance has triggered a bullish institutional use case for ether.
Demand for ethereum has also increased as investors use the tokens to purchase virtual art or land, in the form of non-fungible tokens (NFTs), on platforms such as SuperRare and Decentraland.
On April 26, digital currencies increased after JPMorgan Chase revealed its plans to offer a managed bitcoin fund. Notably, it’s the latest sign of what many consider an example of speculative investment gaining institutional legitimacy.
The world’s dominant cryptocurrency, with over $1 trillion in market cap, Bitcoin regained the $50,000 mark this week. The cryptocurrency was last up 1%, at $55,630.82. However, Bitcoin is still well below its all-time high of $64,895.22 hit on April 14.
On March 1, Goldman Sachs restarted its cryptocurrency trading desk, just weeks after, the giant automaker, Tesla, announced it had invested $1.5 billion in bitcoin, sparking a rally.
However, cryptos hit some resistance after U.S. President Joe Biden revealed plans to raise capital gains taxes, a move that could curb investment in digital assets.